Amazon is going back to pre-pandemic… Coupang fell below $10
As the re-opening (resumption of economic activity) is gradually increasing, the stock prices of companies beneficiary of the pandemic seem to be falling.
Amazon, one of the major beneficiaries of the pandemic, fell below $2,150 in the Nasdaq market on the 10th (local time). This is a decline of more than 40% from the intraday high of about $3773 in July 2021. Foreign media reported that the last time Amazon stock traded at this price range was in February 2020, and that Amazon stock returned all gains since the pandemic. Amazon’s sales growth in the first quarter of this year was also 7%, the lowest since the dot-com collapse in 2001.
Besides Amazon, six other big tech stocks are also in crisis. On the 9th (local time), stock prices of Amazon, Apple, Microsoft, Google parent company Alphabet, Tesla, Facebook parent company Metaplatforms, and Nvidia all plummeted. also evaporated. On the same day, the Nasdaq index centered on technology stocks plunged 4.29% to 11,623.25, the lowest since November 10, 2020 based on the closing price.
Meanwhile, Coupang’s stock fell below $10 for the first time since its listing on the US stock exchange. Coupang closed at $9.35 on the 9th (local time), down 22.34% from the previous day. That’s about a quarter of the public offering price. However, as of the 10th (local time), Coupang rose 13.16% from the previous trading day, making up for the decline.
It is expected that the first quarter earnings, scheduled to be announced on the 12th, may become a significant inflection point in the future share price flow. However, major global securities firms have a positive outlook. JP Morgan raised its investment rating from ‘Neutral’ to ‘Overweight’ and suggested a target price of $17, saying, “Coupang stock is oversold and the current price is undervalued.” In addition, Goldman Sachs’ ‘strong buy’ and UBS, Deutsche Bank, and JAX Investments were all upgraded from ‘neutral’ to ‘buy’.
Foreign media analyzed that tech stocks fell all at once after Federal Reserve Chairman Jerome Powell said that “inflation (inflation) is too high.” In addition, as the New York stock market declines for the sixth week, the Chinese variable is expected to increase market concerns as negative factors such as the recent high inflation, the US Federal Reserve’s interest rate hike, and supply chain damage caused by the Russia-Ukraine war are combined.
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